PACRA Maintains Asset Manager Ratings of National Investment Trust Limited

National Investment Trust Limited ("NITL" or the "AMC") is the oldest Asset Management Company (AMC), which reaps the benefit of being the first AMC in Pakistan. The ratings also take comfort from a strong control environment and satisfactory governance framework. Given the sponsorship of the Government of Pakistan, the AMC's business acumen is considered strong. Additionally, the AMC’s strong equity base and sound financial profile support its rating, while the robust financial strength of its sponsors further reinforces its overall financial position. The rating incorporates fund slate diversification, a structured decision-making process, and an experienced management team. During CY24, the AMC industry experienced a growth of 105%, primarily driven by strong performance in equity and Shariah-compliant equity funds amid a significant rally in the Pakistan Stock Exchange and favorable market conditions. While high interest rates contributed to attractive returns earlier in the year, subsequent rate cuts swiftly led to a shift in investor preference toward equities and other risk-based assets under the income category. While the growth in AUMs of NITL is majorly attributed to NITL’s signature equity fund, National Investment Unit Trust (NIUT), carrying the weightage of ~49% in the overall AUMs of NITL. NIUT stands as the largest equity fund, accounting for a 38.3% market share within the equity category. The money market fund’s AUMs continued the momentum by growing at a pace of 63% since Dec'23 and provided support to the AUMs base. Resultantly, the AUMs of the NITL increased by ~60.6% to stand at PKR 197.9bln at the end of Dec'24 (Dec'23: PKR 123.2bln) while sustaining the market share of ~4.4% at end Dec'24. From the AMC's standpoint, the top ten investors collectively accounted for 39.7% of total AUMs. Overall, fund performance remained satisfactory, with a majority of the funds performing better and beating the benchmark as of Dec’24. The NIT Government Bond Fund under the income category has outperformed the benchmark. The AUMs of NIT Government Bond Fund significantly increased by 502% to PKR 18.8bln at the end Dec'24 (Dec'23: PKR 3.1bln). The client base of the AMC comprised ~27% retail investors and ~73% institutional investors. On the financial side, the management fee increased by 67% and stood at PKR 966.4mln at the end of Dec'24 (Dec'23: PKR 578.2mln) while the AMC remained profitable with ~PKR 1,435mln during Dec'24 (Dec'23: ~PKR 792mln) due to unrealized gain on re-measurement of investment and share of profit from associates. The total equity of the AMC is reported at PKR 17.8bln at the end of Dec'24, which is the highest equity in the market.
The rating is dependent upon the AMC’s ability to sustain its market share and uphold strong investment processes and control environment. Meanwhile, consistent performance of funds compared to the benchmark and peers is critical. Any sustained downturn in fund performance and/or significant loss in market share may impact the rating.

About the Entity
NITL was established in 1962 and is a pioneer in the mutual fund industry. The Company's Board currently comprises fifteen directors. Mr. Manzoor Ahmed assumed charge of the post of Managing Director (Acting), NITL on February 14, 2025. Being, COO, he has been successfully managing the operations and investment portfolio worth over PKR 213bln. He has experience of over 33 years of the Mutual Fund industry and has been placed at many key positions within NIT. The Company is currently one of the largest asset management company in Pakistan with a portfolio of sixteen open-end funds, which includes two non-public funds, namely NIT-SEF and NIT-EMOF, two voluntary pension schemes, two employee pension schemes, and an exchange-traded fund.